Limited Liability Partnership (LLP) Registration

It is better to incorporate an LLP if you want to operate your business with lower maintenance costs and fewer compliances. Also, the designated partners hold ownership and control of the LLP.

But if you plan to raise capital for your business in the future through equity or venture capital funding, then a Pvt Ltd Company is more suitable than an LLP.

A Limited Liability Partnership must have a minimum of two Partners to incorporate an LLP. There is no upper limit on the maximum number of partners of an LLP.

Yes, it is mandatory to register a Limited Liability Partnership on the MCA portal. An LLP must obtain registration under the LLP Act to be considered a legal business entity.

An LLP agreement is a written contract between the partners of the LLP or between the LLP and its designated partners. It outlines the rights and duties of the designated partners towards each other and the LLP.

• It is a separate legal entity, just like companies.
• The liability of each partner is limited to the contribution made by them.
• The cost of forming an LLP is lower than a company.
• Fewer compliances and regulations.
• No minimum capital contribution is required.

An LLP must be registered under the LLP Act, while registration of a partnership firm is optional. In an LLP, liability is limited to each partner’s contribution, but in a partnership firm, partners have unlimited personal liability.

An LLP is a separate legal entity that can contract in its name. A partnership firm is not a separate legal entity and contracts must be in the names of its partners.

Any individual or corporate body can be a partner in an LLP. However, there must be at least two individuals as Designated Partners, and at least one of them must be a resident of India.